September 16, 2024

The HNWIs Pursuit of Social Impact and Sustainability in Luxury

In today latest Monitor edition, we highlight key insights from our recent study on the evolving landscape of luxury, focusing on social impact and sustainability. We analysed behaviour and attitudes of millionaires living in USA, United Kingdom, India, China, and Japan, providing a comprehensive global outlook on the importance that social impact and sustainability have on their luxury consumption.

PHILANTHROPY AND SOCIAL IMPACT

Philanthropy continues to be a core concern for HNWIs, with millionaires in all 5 countries contributing as much funds as last year, or more, to charitable causes:

  • Top Causes: Poverty and hunger reduction, healthcare, and wildlife conservation lead the list of supported causes.
  • Impactful Brands: HNWIs are increasingly drawn to brands that contribute to social causes, enhancing their brand loyalty and preference.

SUSTAINABILITY AS A PRIORITY

Sustainability is now a crucial factor in purchasing decisions:

Eco-Friendly Choices: A majority of HNWIs prefer brands that are perceived as eco-friendly, even at a premium price.

Sustainable Practices: Initiatives like reducing wasteful packaging and using recycled materials are highly valued

Sustainable Practices: Initiatives like reducing wasteful packaging and using recycled materials are highly valued

“I have become really interested to know about brands’ ethical practices. For example, are they doing something for the world besides putting these shoes on my feet?” –  HNWI, US

SUSTAINABLE TRAVEL

Travelers are becoming more environment conscious. They chose brands that contribute to sustainability causes… but only as long as the luxury experiences remain intact.

  • Global warming is a hot topic, and hotels that have good environmental and sustainable practices are perceived to have higher social value.
  • Hotels that work with and support local communities are also attractive e.g., fair trade coffee or zero-miles supply policies.

SUSTAINABLE INVESTING

For HNWIs, sustainability is a major area not only when consuming luxury, but also when investing their wealth. They understand that allocating their wealth to investments which have a high ESG component, can make a true difference in how the economy develops in a more sustainable way. As a result, a significant majority of HNWIs are incorporating sustainable investments into their financial portfolios:

  • Growing Trend: Over 90% HNW investors already include sustainable funds, highlighting a strong commitment to ethical investing.

TAKEAWAYS

No matter in their personal life, or in the way they consume luxury and invest their wealth, sustainability and social impact are clearly important themes HNWIs care about. Brands need to prioritize these values by integrating eco-friendly practices, ethical sourcing, and transparency into their operations. By doing so, they can build deeper connections with their affluent consumers, who are increasingly making decisions based on a brand’s environmental and social footprint.

The insights are an excerpt from the latest TrendLens™ and WealthLens™ 2024 Data & Insights studies.

TrendLens™ is a comprehensive data and insights solution designed for premium and luxury brands. It tracks and identifies trends in Affluent & High Net Worth consumer behavior across sectors.

WealthLens™ is a strategic data & insights program to understand HNWIs and UHNWIs insurance, banking and wealth management behaviours, identify and profile this core audience and their financial need and optimize marketing strategies.

For more information on how to subscribe, contact Jason@agility-research.com.